Vitas Vasiliauskas has about the advantages and disadvantages of digital Central Bank currencies (CBDCs) will be. The member of the Council of the European Central Bank difference between different application models. A financial institutions tailored solution appears to him, for the Moment, the most practical.
By Anton Livshits
On 29. May 2019BTC$8.703,00 0.08%part Facebook Twitter LinkedIn xing mail
Convinced Bitcoin-Disciples like to refer to the advantages that are enrolled for a decentralized currency. Ironically, Central banks think, however, a diametrically opposite model of crypto-currencies: Central Bank Digital Currency (CBDC). This would be a digital currency that is brought from a Central Bank into circulation and regulated. Vitas Vasiliauskas, in his capacity of member of the Council of the ECB and the Executive Board of the Lithuanian Central Bank, has thought at a conference about the future viability of such a currency concept.
In his speech, is different Vasiliauskas Essentially between two application possibilities: accessible variant, as well as a specially designed to large investors and financial institutions tailored model. Ultimately, the ECB governing Council member to the second variant is preferable.
Digital Central Bank currencies to facilitate payments
For Vasiliauskas, a Substantially on institutions limited CBDC increases the efficiency of the General payment and the settlement of securities transactions. A novel technical solution would reduce also liquidity risks. The ECB governing Council member outlined how such a concept could be implemented in practice:
Some argue that it could run on a Distributed Ledger. In this case, you would replace [the CBDCs] the reserves of the Central Bank by a digital Token with restricted access or amend. A Token is a bearer object, i.e., the transmitter would be transferred during the transaction without an intermediary, the value to the recipient. This is something completely different than the current System, in which the Central Bank accounts loaded and relieved, without having to transfer actual values.
CBDC for Everyone: hardly any of the benefits?
the idea Of CBDCs for the General public to introduce, takes Vasiliauskas, however, distance. This could help to improve the success of national monetary policies. They promise to increase the financial stability. However, a number of other cashless payment systems has established itself in recent years. The ECB governing Council member rated the introduction of freely available CBDCs therefore, in comparison, is hardly profitable.
The statements made Vasiliauskas clear that CBDCs to stay, at least for Lithuania to continue in the future. The financial expert, calls only for more data. Central banks of other countries, however, already today digital services. Including Sweden and the Ukraine. Such products are in comparison to Bitcoin & co., remains to be seen.
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